BNP Paribas Launches Ethereum Money Market Pilot

BNP Paribas Asset Management has issued a tokenized share class of a French domiciled money market fund using the public Ethereum blockchain.

Key Takeaways

• BNP Paribas Asset Management launched a tokenized share class of a French money market fund on the public Ethereum network.
• The pilot used a permissioned access model, limiting transfers and holdings to authorized participants.
• The initiative was conducted as a controlled intra group experiment to test end to end blockchain fund processes.
• The move builds on BNP Paribas’ earlier private blockchain tokenization project in Luxembourg.

What Happened?

BNP Paribas Asset Management has introduced a tokenized share class of an existing French domiciled money market fund, marking its latest step into public blockchain infrastructure. The tokenized shares were issued on the Ethereum network through BNP Paribas’ AssetFoundry platform under a permissioned model that restricts participation to eligible investors.

The pilot was structured as a one off intra group experiment designed to test new operational processes across issuance, transfer agency, tokenization, and blockchain connectivity within a regulated framework.

Testing Public Blockchain in a Regulated Framework

The new issuance represents BNP Paribas’ second tokenized money market fund initiative. Previously, the firm issued a tokenized fund in Luxembourg using private blockchain infrastructure. This time, the project shifted to the public Ethereum network, while maintaining strict controls through permissioned tokens.

Under this model, holdings and transfers are restricted to authorized participants, ensuring compliance with regulatory requirements while benefiting from the resilience and broad adoption of public blockchain infrastructure.

According to the official announcement, the initiative was conducted as a one off, limited intra group experiment, enabling BNP Paribas to test new end to end processes, from issuance and transfer agency to tokenisation and public blockchain connectivity, within a controlled and regulated framework.

Roles Across the BNP Paribas Group

The project leveraged BNP Paribas’ integrated operating model across multiple business units:

• BNP Paribas Asset Management acted as fund issuer
• BNP Paribas Securities Services served as transfer agent and fund dealing services provider
• BNP Paribas CIB’s AssetFoundry platform provided tokenization and blockchain connectivity
• Securities Services also handled wallet setup and custody of private keys during the pilot

Edouard Legrand, Chief Digital and Data Officer at BNP Paribas Asset Management, said:

Julien Clausse, Head of AssetFoundry at BNP Paribas CIB, added:

Paul Daly, Head of Distribution Product Solutions at BNP Paribas’ Securities Services business, stated:

Why Money Market Funds?

Money market funds play a central role in liquidity management for corporate and institutional investors. Tokenization is being explored across the financial sector as a way to enhance fund issuance and distribution models.

For money market funds specifically, tokenization could provide:

• More flexible processing of fund related operations
• Reduced reliance on traditional batch based processing
• Improved operational efficiency
• Maintained regulatory safeguards

The pilot also comes as BNP Paribas continues to expand its footprint in institutional blockchain initiatives. The bank has been active in digital asset experimentation, including participation in broader industry projects exploring stablecoin issuance and blockchain based financial infrastructure.

CoinLaw’s Takeaway

In my view, this is not just another blockchain test. I see this as a serious signal that major banks are becoming more comfortable with public blockchain infrastructure. The fact that BNP Paribas moved from private blockchain experiments to Ethereum shows growing confidence in public networks when paired with permissioned controls.

From my experience covering tokenization trends, money market funds are one of the most practical starting points. They are highly structured, heavily regulated, and widely used by institutions. If tokenization works here, it creates a strong case for broader adoption across traditional finance.

This pilot may look technical on the surface, but it reflects a deeper shift in how global banks are thinking about digital assets.

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